The sun. [volume] (New York [N.Y.]) 1833-1916, 1887-11-27

what 10 the Mesusns ef the DApressisn %
which Mesbers Cesspisins

It Is becoming q question whether the sys.
tenn OF Exchanges. once thought certain to be
made universal In nearly all departments oil
mercantile trafic, is likely to remain per.
manently popular. 1t Is observed now that the
securities and products handled most largely
through these agencies seem to be under a
cloud, while other staple articles Of COM
merce. handled by individuals, partnership
firms, or corporations, In accordance with
ordinary methods, are exceedingly active. This
leads to reflection, and gives to the opinions OF
NOR whose wits have been sharpcned by OBJ
servntion q peculiar interest.
Members Of the New York Produce Exchange
complain universally OF depression. Wheat.
they say. is twelve to fifteen cents per bushel
lower than II ought to DO quoted. Corn. oats,
and other cereals arc also held below quota
lions that will give n fair profit to producers
and brokers, while tho value OF oil the other
agricultural products that can be handled In
sufficient bulk to be made a feature OF Ex-
change dealings ia not large enough to yield
satisfactory returns. or course, the entire
agricultural product OF the country, reaching
10 more than $4,000, 100000 annually, Is
something enormous. But tho market
for this prodact. unlike the market
for stocks or bonds. cannot be concen-
trated. The traffic In farm commodities
must 60 forward in every market town. and
the great cities can hope to control only a very
limited portion OF tho whole amount. OBJ
servation on these facts has led SOM very in
t~elligent members Of the Exchange to doubt
the soundness OF the theory on which 1t was
founded, or. Mt loast, to look forward to the
day when It's high claims will be so far sur
rendered that seats will bring no more in hun
dreds Of dollars than they now bring in thou
sands. The decline, however,. would not be
Thought altogether a calamity, rs it would lead
to a great increase In membership. and an en-
With regard 70 the causes Of the PREVAILING . Eles
differing opinions. Some believe It to be due
10 large syndlcates WHICH exert, a depressing
should be regulated. Small dealers cannot
trust their judgment, while these syndicates
Information and color the reports to suit their
convenience. Located near tho grain fields.
lakes to California, 1t is In their power to de-
press or stimulate prices IN their own interest.
m naa they Eh hs'G Is i tss to sn be i soS dSale r. s At .h saI
ure Of the New York Produce Exchange to re-
erations. 1t seems to offer an, additional rea-
son for trying 70 enlarge the be. local field OF op-
eF Tits IS a 4 s s1as nc hiya aeeepsed cause for com.
plant. Other members or close observers Of
the Exchange believe much OF the depression
to BIO due to the inflated character. OF the deal
more thai 0 5000, 900 or 45O. 1000 900 bushels Of
glo year. Yot the TRANSACTIONS Of the Exchange
reach many thousand million bushels each
year; much Of thus total l., 81 he course sn@. being nraI due
R iasn c % fIetio ia' fSis n method IN n train stSH'f has been
bbi ii%nHg. Il IS eont as also. that It tends to
increase largely the number. OF men engaged
In the produce trafie; - and ,lo, to de decrease eaa the
lively small volume OF legitimate transactions.
Even stock brokers. It L. said. disguised with
have become dealers In produce, and helped to
s sjss s1sii in ' b ri iisldi Put s !; On ps ,as Ssh jasl hsn ID
system: or Of banking prinelples at least, to
curity or commodity is made marketable by
Il; Il. r eam, n ed IL Interest I,ssgs a. or ,p prpiltHS Ss and though
q the imaginati teSvi il The The percentages cree tag Or H profts
drawn by the holder are satisfactory there can
be no cause i9r complaint: The man who buys
laying !. The s. so%%aG Slig il. lis i.J S 3 Stsn; t5 IL
POINT 81 view an Exchanse thatdesiisi in futures res
SO called. becomes rather a cooperative insti-
tuition than a gambling ring, and the longer
the benefits. Each Individual member. contri-
returns. II matters not II the business be done
with no charitable intent; The, best charities
% s1s ,h e nav yP nis v S11er r hsle a snd yet is sG }u,aqo 3
seems to be a method in finance that holds
credit at, a very, dangerous tension. but it
bslieyed f by the j inflated Pe to Be very ny' Sarml 5
asrieaituraI' products Sit It cannot be Questioned
that they help to make the market independ-
ss5,o9ft : size OF the grain crops. Upon the
OF the Produce "S, Exchange Would i think tAi It wise
'to attempt to limit transactions to the amount
The third explanation offered for the depres-
sion In the grain trade looks beyond this coun-
try, and sees ip foreign competition not only a
cereals, but q cause that will continue to
operate more and moro to our disadvantage.
England Is learning that India can produce
grain In abundance, and ship can obtain this
SSs snlIet on bt ser% oWa that ptc Ti,t rather Ms sfbPlsIRdIsbb a thu
American grain fields, unless the East Indian
South America, also. Is beginning to compete,
md must soon become a very large competitor
those who believe the depression due to Tor.
eign composition cannot take a very hopeful
Against the theory OF foreign competition as
q cause for depression are put certain statis-
Teal facts, In the first place wheat is the only
export between one.foSrth and ohHe-third our
annual product in wheat, but Of corn we only
sond abroad about four per cent. This amount
would DO hardly appreeiable in it's influence on
our OK expectations are comparatively light. But
In its Influence on prices 1t Is not easy to SEQ
clearly. how oven our expectation Of wheat is to
bs estimated. say that we send one-third
two.thirds' at home; n Tho trapsae-
comes 9 question whether this one-third
thirds consumed. or against o large proper
ton of the total sales on the floor OF the Ex-
change. which, rs before stated. mount up
among the thousands OF millions. There ap-
pears to DO something SO like pure moonshine
In the sale OF 9 commodity which the seller has
not got. and the buyer never expects to receive.
that II, may seem idle to credit such a transact
ton with nay market influence. But it is be-
lieved to have u very considerable influence In
creating demand. thereby enhancing prices.
OF an oversupply. Wheat ceases to pc merely
q financial security like stocks or bonds, It Is |
enabled within itself to neutraliZe such small
MS foreign competition.
These are the views OF men who regard the |
eu AFFECT mainly from the business point OF view.
There are still other opinions held by those
study the question from economic data,
and they differ with the business men In some